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Chien, Yu-Lan; Huang, Cliff J.; Shaw, Daigee

A general model of starting point bias in double-bounded dichotomous contingent valuation surveys. (English) Zbl 1090.91069

J. Environ. Econ. Manage. 50, No. 2, 362-377 (2005).

Summary: This paper develops a general model that addresses the starting point bias in the dichotomous choice evaluation data by incorporating both the anchoring effect and yea-saying bias. The model is applied to a contingent valuation study that evaluated the health benefits of air quality improvement in three major metropolitan areas in Taiwan. The empirical evidence shows a strong anchoring effect but an insignificant yea-saying bias. The results show a serious understated willingness to pay if the biases in anchoring and yea-saying are not controlled.

MSC:

91B76

Environmental economics (natural resource models, harvesting, pollution, etc.)

Keywords:

CVM; double-bounded dichotomous data; starting point bias; anchoring effect; yea-saying bias

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